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campaign and virtually writing ICAC off. Mr Cater, however, while not concealing that the amnesty was a blow to ICAC, made it plain from the start that he understood and supported the Govenor's action and did not regard the anti-corruption campaign as over. He also contested assertions published in the press here and in Hong Kong to the effect that corruption remained

as rife as ever.

4. In addition to its much publicised operations work, ICAC carries out two other important anti-corruption functions:

corruption prevention, by examining the

5.

(i)

procedures of all Government departments in order to identify and eliminate anything that facilitates

corruption;

(ii) public education, through a vigorous and wide-

ranging information campaign, to try to change public

attitudes and eradicate the widely held belief that

corruption is an unavoidable part of the Hong Kong

cultural tradition.

I recommend that Lord Goronwy-Roberts should congratulate Mr Cater on the achievements of ICAC under his leadership, and assure him that the Commission has HMG's fullest support in its battle against corruption. The Minister may then wish to ask

Mr Cater for his latest assessment of the position as regards corruption in Hong Kong, and seek Mr Cater's views on ICAC's most important taks in the next few years.

6.

Mr Thompson from this Department will be present at the meeting.

17 July 1978

cc:

Mr Cortazzi OPA

CONFIDENTIAL

W.E. Quantill

WE Quantrill Hong Kong and General Department

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